SABIC, Clariant AG defer merger talks until market conditions improve

Saudi Basic Industries Corporation (SABIC) and Clariant AG have reached a common understanding to temporarily defer talks on merging the former’s specialties business with the Swiss group due to current unfavorable market conditions.

"This decision does not impact the performance of SABIC’s Specialties business or its ongoing customer commitments," the major petrochemical producer said in a statement on Thursday.

"SABIC looks forward to continuing these discussions once conditions have improved as we remain committed to our strategic growth ambitions in the area of specialties," the statement added.

SABIC's specialty chemicals unit comprises its unique ULTEM and NORYL resins, and its families of LNP compounds and copolymers

SABIC, the largest shareholder in Clariant with a 25 percent stake, signed a memorandum of understanding (MoU) with Clariant AG in September 2018 to open discussions and conduct a due diligence process with the shared intent to combine its future stand-alone specialties business with the additives and high value masterbatch areas of Clariant AG.